Not financial advice: For tax year 2013, Maryland's personal tax rates start at 2% on the first $1000 of taxable income and increase up to a maximum of 5.75% on income exceeding $250,000 (or $300,000 for taxpayers filing jointly, heads of household, or qualifying widow(ers)).
For this instance, 2% of $1,400 is $280. Subtract $280 from $1,400 will give you the result of $1,120.
Higher-income Americans and some legally married same-sex couples are likely to feel the biggest hits from tax-law changes when they file their federal returns in the next few months. Taxpayers also will have a harder time taking medical deductions.
In other changes for the 2013 tax year, the Alternative Minimum Tax has been patched - permanently - to prevent more middle-income people from being drawn in, and there's a simpler way to compute the home office deduction. Read more at Philly.com.
According to ABC News, if you didn't take advantage of a wide array of tax credits and deductions last year, it looks like you'll be out of luck in 2014. The Congressional Research Service says there are dozens of expiring "tax extenders." Most — but not all — had been put in place or given new life as part of legislation passed by Congress at the end of 2012 to avert the fiscal cliff of automatic tax increases and spending cuts. Find out more here.